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Question
Find the market price of 5% share when a person gets a dividend of Rs 65 by investing Rs. 1430.
Solution
Amount of dividend = Rs.65
Rate of dividend = 5%
∴ Total face value
= `(65 xx 100)/(5)`
= Rs.1300
If face value is Rs.1300, then market value
= Rs.1430
and if face value is Rs.100, then market value
= `(1430 xx 100)/(1300)`
= Rs.110.
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